Sugarcane farmers to gain Rs 96.56 crore from revenue-sharing formula in Maharashtra

Last year’s monsoon recovery raised hopes of a production rebound in the new season, beginning October 2017.

Sugarcane growers in Maharashtra are set to get the second instalment payment within the next month. This comes after the Cane Control Board (CCB) sealed the payments as per the revenue sharing formula, and farmers will gain Rs 96.56 crores as per the calculations.

The cane season of 2016-17 was the first when Maharashtra paid growers as per the revenue sharing formula of the C Rangarajan Committee. The panel had recommended sharing of revenue between growers and millers in the 70:30 ratio. Mills in the state had, however, paid more than the fair and remunerative price (FRP) last season as paucity of sugarcane had triggered a price war. The CCB has representatives of millers and growers and gives the final nod to the calculation according to the formula.

Sambhaji Kadu Patil, the commissioner, sugar, said the total FRP payment due to the growers was Rs 8,307.40 crores. “The payment amounted to Rs 8,614.76 crores as per the revenue sharing formula,” he added. Mills in the state had already paid Rs 10,287.80 crores. Kadu Patil stated that of the 150 mills that had taken part in crushing last year, 112 had complied with the formula while the rest are yet to comply,” he said. These mills have been given a month to pay the excess Rs 96.50 crores to the growers.

After a resolution was reached regarding the first instalment between growers and millers, sugar mills in the state have commenced crushing in full force. More than 81 mills started operations with mills in western Maharashtra taking a lead. The commissionerate has initiated the online issuance of crushing licences from this season and till date, around 140 licences have been issued. Jaiprakash Dandegaonkar, the Vice-President of the Maharashtra Co-operative Sugar Factories Federation, said barring six mills in Hingoli and Nanded, no mills have faced any issue regarding water availability. “The quality of cane this year is good, in terms of weight and quality,” he said. The state is set to see a production of over 72 lakh tonnes of sugar this season.